Do Mutual Funds Hedge Positions?

Do Mutual Funds Hedge Positions?

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Tech Guru
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Almost every other MF is trading with damn losses from the last 1.5 months.
NPS, regular MF, ELSS, almost every equity-based investment product.

I don’t understand why didn’t they hedge the positions?
Any regulation restricting this? rolleyes

5 Comments  |  
3 Dimers
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Deal Lieutenant
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I also wanna know but I don’t have any info regarding this. So I have posted this question on one of FB group. Let’s see!

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Deal Cadet
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I don’t think they are allowed to hedge.

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Deal Lieutenant
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RaviKhanna wrote:

I don’t think they are allowed to hedge.

But why?
Just because it is retail investors money so they do not need to take safeguards matters?

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Tech Guru
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xuseronline wrote:

But why?
Just because it is retail investors money so they do not need to take safeguards matters?

Because they are the first time investors and don’t have enough time to track markets daily.
Why not steal quick cash from them?

Most retail investors are in losses,
they want us to hedge the positions ourselves
thus killing the main theme behind Mutual funds ~ saving time confused

I invested for my sis in NPS and some MFs
I am shocked seeing damn losses even in NPS like fund meant for retirement.

Without hedging, how they can call themselves fund managers?? rolleyes

They only help rich people to exit their positions in the bear market
by asking retail investors to do SIP no matter where the market is heading pensive

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Tech Guru
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Original wrote:

Because they are the first time investors and don’t have enough time to track markets daily.
Why not steal quick cash from them?

Most retail investors are in losses,
they want us to hedge the positions ourselves
thus killing the main theme behind Mutual funds ~ saving time confused

I invested for my sis in NPS and some MFs
I am shocked seeing damn losses even in NPS like fund meant for retirement.

Without hedging, how they can call themselves fund managers?? rolleyes

They only help rich people to exit their positions in the bear market
by asking retail investors to do SIP no matter where the market is heading pensive

Kuch log kehte hain Mututal Fund safe hai.
Some say NPS safe hai…

Bhai yahan kuch safe nahi hai, learn markets yourself and invest wisely.
Buy on dips and always hedge your position when markets are on their lifetime highs.


ELSS and NPS like investment product meant for long term investment bhi safe nahi hai smile

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